Morgan Stanley & Co. Inc. of New York is cutting its four retail divisions down to two, creating a South/West division and a Northeast/Central division.
Bill McMahon, who has been the firm's Southeast divisional director, also now will be responsible for the Western division. Northeast divisional director Rick Skae was given additional oversight of the Central division.
Former Central division director Jerry Miller this month became chief executive of Morgan Stanley's mutual fund unit, Van Kampen Investments Inc. of Oakbrook Terrace, Ill.
Margaret "Mag" Black, formerly the Western divisional director, was given a new post as vice chairman, national sales, in which she will lead diversity efforts in the sales force as well as build services for the firm's high-net-worth clientele.
The changes were announced this month in an internal memo from Andy Saperstein, head of national sales at Morgan Stanley.
Ms. Black, Mr. Skae and Mr. McMahon will report to Mr. Saperstein.
The management revamp wasn't a cost-driven exercise, said James Wiggins, a Morgan Stanley spokes-man.
"The appointment of Jerry Miller as [chief executive] of Van Kampen provided an opportunity to streamline the management structure at the division level, while assigning [Ms. Black] to focus on important business issues," Mr. Wiggins wrote in an e-mail.
He said the structure of Morgan Stanley's 21 districts, which now report to the two divisions, remains unchanged.
After a 33-year career spent as a broker and manager, Ms. Black said her new role "is a natural for me." She can see where Morgan Stanley can work to improve the experience for wealthy clients, and even though Ms. Black doesn't have specific plans yet, she said that a lot will entail pulling together what Morgan Stanley already does or offers.
She will remain in Los Angeles and maintain contact with the field.
Regarding the firm's diversity efforts, Ms. Black plans to improve recruitment of female and minority brokers.
"It's a great business for anybody. We need to reach out and explain it more," Ms. Black said.
"The most impressive [female] managers I've worked with all report to [Ms. Black] in California," said Steve Trautwein, founder of The Shoal Bay Agency LLC, a Great Falls, Va., recruitment firm that works with Morgan Stanley and other firms.
"I can see where they want the whole firm to do what [Ms. Black has] done" in attracting female managers and brokers, he said.
At Van Kampen, Mr. Miller will look for opportunities "across all asset classes, including mutual funds, alternatives and merchant banking," Mr. Saperstein wrote in his memo.
The investment business isn't new for Mr. Miller. From 2002 to 2006, he was chief operating officer at the proprietary fund business of Merrill Lynch & Co. Inc. of New York.
ON A ROLL IN THE WEST
Industry observers say that the reassignment of Ms. Black won't slow down Morgan Stanley's West Coast business, which has been on a roll in picking up top management talent.
Last year, Morgan Stanley hired as its Los Angeles-based associate divisional director Jeff Bouchard, former national sales manager at St. Louis-based Wachovia Securities LLC.
He brought over Steven Stahlberg, formerly major markets manager in Roseville, Calif., who was considered one of Wachovia's best recruiters.
Mr. Stahlberg took over as a Morgan Stanley district manager with responsibility for 22 offices in Northern California.
"They want young blood in there to really build" the Western region, said a recruiter familiar with the moves who asked not to be identified.
This month, Mr. Skae and Mr. Bouchard lured a prominent Merrill Lynch manager, John Simmons, to Morgan Stanley to run its San Diego district.
Mr. Simmons had been managing Merrill's Washington flagship office, on K Street.
Last month, Randy Hammond, formerly the Atlanta complex manager for Wachovia Securities, joined Morgan Stanley as Los Angeles complex manager.
E-mail Dan Jamieson at [email protected].
